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The surge, with the Capital Governorate accounting for 48% of rental transactions, underscores a strengthening demand for well-designed homes Bahrain’s property market demonstrated resilience in 2024, with a notable 23 per cent year-on-year increase in residential rental values, driven by demographic growth and government initiatives, according to a Savills report. This surge, with the Capital Governorate accounting for 48pc of rental transactions, underscores a strengthening demand for well-designed homes. Savills’ Q4 2024 analysis reveals that Bahrain’s economy, bolstered by a 2.1pc GDP growth primarily fueled by the non-oil sectors (manufacturing and financial services, representing 37pc of GDP), has provided a stable foundation for the real estate market. The introduction of long-term residency options, such as the Golden Visa, has further stimulated investor confidence, particularly among high-net-worth individuals, resulting in a 1.4pc year-on-year price increase for high-end apartments, while villa prices remained stable. “The significant uptick in residential rental values, particularly in the Capital Governorate, reflects a clear trend of increased demand for premium living spaces,” said Savills Middle East head of professional services in Bahrain Hashim Kadhem. “This, coupled with the steady growth in high-end apartment sales, indicates a robust residential market driven by both local and international interest.” Data from the Urban Planning and Development Authority’s expansion of residential-use areas by 208,000sqm highlights the government’s commitment to addressing housing demands. While the residential sector saw strong growth, the commercial office market faced challenges with limited demand and flat rental growth. However, the retail sector showed signs of recovery, with luxury brands like Rolex and Giorgio Armani opening new stores in Marassi Galleria, driving foot traffic. The industrial sector, integral to Bahrain’s economic diversification, witnessed a 2.1pc year-on-year increase in rental rates for larger warehouse spaces, reflecting sustained demand driven by the manufacturing sector. Savills projects continued momentum in the industrial sector, supported by ongoing infrastructure investments. “The data clearly indicates a diversified real estate landscape in Bahrain,” Mr Kadhem added. “While some sectors face challenges, the overall market remains buoyant, supported by a resilient economy and targeted government initiatives. We anticipate continued growth in 2025.” |
